You already know how important it is to protect your credit score. This number impacts things like your ability to qualify for loans, and what rates you pay on those loans. If you are thinking about leaving your timeshare for any of a number of reasons, you’ll want to be sure to do so in a way that isn’t going to have a negative impact on your credit.
This page is going to take a detailed look at what leaving a timeshare can do to your credit and how to avoid any negative implications. The path for every timeshare owner is going to be unique based on the terms of their contract, the specific timeshare they own, and other factors, but there are some things to keep in mind that will apply across the board.
Canceling Can Actually Protect Your Credit
Before we get into more of the nuts and bolts of how to cancel a timeshare without harming your credit, it’s actually good to flip this question on its head for a moment. Instead of wondering if canceling your timeshare is going to hurt your credit, change that perspective and think about what might happen to your credit if you don’t find a way to get out.
If you keep your timeshare, you are going to continue to pay on it for the foreseeable future. That means some of your income is going to be directed toward paying on the timeshare rather than addressing some of your other bills. So, you might fall behind on other payments and wind up with credit damage as a result. By getting rid of your timeshare properly, you can protect against that outcome and actually put your financial future in a much better position.
Carefully Review Your Agreement
The process of leaving your timeshare successfully starts with taking a close look at the details of your contract. There is a good chance that you haven’t looked at this document at any point since you originally made the purchase, but now is the time to dig it out and go over it carefully. This won’t be the most enjoyable read you’ve ever picked up, but it is important that you know exactly what terms are in the contract and what the exit process looks like from a legal perspective.
There might be specific terms in the contract that dictate how you are able to get out and what needs to be done for you to no longer be an owner. While you can probably read through this document on your own, it might also be worth considering paying a lawyer for a bit of their time to go over it with you and decode any language that is confusing. Knowing that you are interpreting the contract correctly and that there are no misunderstandings that could throw you off track will be more than worth the money that you pay to a lawyer for their assistance.
Contact the Timeshare Company Directly
One of the easiest ways to potentially get rid of a timeshare is actually to talk to the developer about just taking it back. This is a path that will sometimes, but not always, be possible – but only if you ask. If you reach out to the developer and tell them that you are looking to get out of your timeshare agreement, they might be able to point you in the direction of a program that they are running. Some timeshares regularly take back deeds from owners who want to leave. This can help both parties, as the owner is able to get out while the developer adds to their inventory of timeshares to sell to new buyers.
You won’t have to worry about any damage to your credit if you take this path. Since you’ll be cooperating with the developer to work out a deal, they aren’t going to have anything to report to the credit agencies that might harm you in the future. Of course, you’ll need to keep up with your payments in the meantime until you are officially no longer an owner of the timeshare and not responsible for things like maintenance fees and assessments.
Try to Sell Your Timeshare
Another way to end your experience as a timeshare owner is to sell the timeshare to another party. There are platforms available online that are dedicated to the purchase and sale of timeshares, and many of them will allow you to list for free. This is a great way to at least put your timeshare out there in front of some prospective buyers to see if anyone is interested in making a deal.
I can warn you now that the market for timeshares is notoriously slow and meager. It’s quite possible – and maybe likely – that you’ll list your timeshare and never really get anything in the way of a response. With that said, you should still give it a try if you are trying to get rid of your timeshare without doing any damage to your credit. Like giving it back to the developer, this is a path that allows you to leave without getting in any credit trouble or falling behind on payments. Just confirm that the deal is completed properly, everything is signed and submitted as it needs to be, and the developer recognizes the buyer as the new owner while you are off the hook.
Use a Timeshare Exit Company
Some people will hesitate to jump into this last option simply because it does come with a cost. If you hire a timeshare exit company, you’ll need to pay that company – but they could manage to get you out of your timeshare without hurting your credit so you can move on with your life.
It’s important to be clear with your chosen exit company right from the start regarding what you want out of this experience and how you want to attempt to leave your timeshare. If they are suggesting any tactics that might cause harm to your credit, such as not paying your maintenance fees, inform them that you don’t want to go down that road. Take your time in picking an exit company so you can be sure to select one that aligns with your goals and is going to help you arrive at a positive outcome.
There is also the matter of protecting your money to consider when hiring a timeshare exit service. If you just write them a check and then hope for results later, it’s possible that you will wind up being taken advantage of and the money you spend will be wasted. That’s not how I want this to go for you, of course. By picking an exit company that is willing to use escrow to hold your money while they do their work, you’ll have a layer of protection and will be able to pursue some recourse if they don’t get results.
Your best chance at success when going down this road is picking an experienced company that has a proven track record of success and is willing to use escrow to keep your payment safe. As long as you have made it clear to your exit company partner that you only want to use methods that won’t harm your credit, you should be able to move forward confidently and give them the chance to do what they do best.
Frequently Asked Questions
There are plenty of questions that are commonly asked about canceling a timeshare, and while I can’t address all of them here, I will cover some of the ones that seem to come up over and over again.
Q: Is it worth hurting my credit to get out of a timeshare?
A: Probably not, but that’s for you to decide. Make sure to understand the implications of falling behind or defaulting on your timeshare so you can decide what your best option is moving forward.
Q: Can renting out my timeshare save my credit?
A: If you are having trouble making the maintenance fee payments on your timeshare, you might want to consider renting it out in order to generate revenue that could be used to keep up with those payments and avoid credit damage.
Q: Does having a timeshare hurt my credit?
A: Not on its own. There is nothing wrong with owning a timeshare as far as credit is concerned, but you will need to keep up with the ongoing payments to avoid harm.
Explore Every Possibility
With something as important as canceling a timeshare, you don’t want to take any chances. That means gathering as much information as possible so you can be fully prepared to take the appropriate steps that will lead to a clean exit and no credit damage. Take a moment today to call us at 833-416-8796 to learn more about the process of leaving a timeshare and what it entails. You are also welcome to use our live chat function to get in touch and get the information you need. I hope we will be able to help you make this exit happen!